Question: 2. Suppose your rm is considering two mutually exclusive, required projects with the cash ows shown below. The required rate of return on projects of

 2. Suppose your rm is considering two mutually exclusive, required projects

with the cash ows shown below. The required rate of return on

2. Suppose your rm is considering two mutually exclusive, required projects with the cash ows shown below. The required rate of return on projects of both of their risk class is 11 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time: 0 l 2 3 Project A Cash ow : -33,000 23,000 43,000 14,000 Project B Cash Flow: -43,000 23,000 33,000 63,000 Use the discounted payback decision rule to evaluate these projects; which one(s) should it be accepted or rejected

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